Cost changes as a related activity changes


Problem 1: The manner in which a cost changes as a related activity changes is known as ______

Problem 2: In terms of cost behavior, direct materials and labor costs are generally classified as _______

Problem 3: The range of sales or production activity over which the behavior of the cost is of interest to management is called the ______

Problem 4: The activity that is thought to cause a cost to be incurred is called an _________

Problem 5: Straight-line depreciation of factory equipment, insurance on factory plant, and factory supervisor salaries are examples of (variable costs, fixed costs or mixed costs) ________

Problem 6. Rental of equipment at $9,500 per month plus $8 for each machine hour used over 6,200 hours is a type of (variable cost, fixed cost or mixed cost) ________

Problem 7. A management accounting reporting system that includes only variable manufacturing costs in the product cost is known as variable or ________

Problem 8. The high-low method is a cost behavior estimation method that may be used to separate (variable costs, fixed costs or mixed costs) ________

Problem 9. An increase in fixed costs will cause the break-even point to _________

Problem 10. Given sales per unit of $25 and variable costs per unit of $10, what is the break-even point in sales units if fixed costs are $60,000?

Problem 11. Sales minus variable costs divided by sales is the calculation of the _________

Problem 12. Decreases in the price of direct materials and the wages of factory workers will cause the break-even point to _________

Problem 13. The relative distribution of sales among the various products available for sale is called ___________

Problem 14. On a break-even chart, unit sales are plotted along the __________

Problem 15. The difference between the current sales revenue and the sales at the break-even point is called ________

Problem 16. With the aid of computer software, managers can vary assumed selling prices, costs, and volume and can see immediately the effects on the break-even point. This is known as _______

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Accounting Basics: Cost changes as a related activity changes
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